USD/JPY recovery expected to extend – Commerzbank

In light of t he recent price action, the recovery in USD/JPY could extend further, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“We have tested and so far held at the critical band of support offered by the 110.31 250 day ma and the 55 week ma at 109.75, and is attempting to recover from this zone, we look for this to continue. Nearby resistance is the 55 day ma at 112.27 and this guards the 114.50 recent highs. Above 114.50 will see an extension to the 115.51/62, this years highs”.

“Key nearby support is the 250 day ma at 110.27 and 55 week ma at 109.75, below here, there is scope for slippage to the 108.13 April low”.